Ekurhuleni threatens legal action after Moody’s downgrade to ‘junk’
The City of Ekurhuleni has threatened legal action against Moody's following its decision to downgrade the metro’s credit rating to junk status.
The credit rating agency downgraded Ekurhuleni after it failed to submit its audited financial statements to the Johannesburg Stock Exchange (JSE) by the end of February.
The agency said the downgrade reflects the increased risk of default amid weakening governance and management practices.
In a statement released on Wednesday, the city said it has no formal agreement with Moody’s for any evaluations.
It insisted that its financial integrity remains sound and urged its stakeholders to focus on forthcoming reviews by the city's officially designated rating agency.
The city added that it had received the auditor-general’s report on the last day of February.
This follows a public spat with the AGSA, during which the city claimed that the national audit office had delayed the release of the metro’s 2022-23 audit report.
The metro will now table the report at an upcoming council meeting before releasing it to the public.
"We remain committed to transparent and responsible financial management, ensuring continued quality service delivery and development in Ekurhuleni,” the city said in the statement.
It said the city will also consider taking legal options to claim for reputation damage caused by the unsolicited Moody's review.
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